My wife and I are planning to buy a new home qnd we’re fairly deep into talks with the developer. The loan would be in my name (foreigner) and we got pre-approved with Shinsei Bank. They said there were no special conditions attached to our approval even though I dont have PR (my wife is Japanese and we have a kid, for what it’s worth).
So that all sounds good but my understanding is that our floating interest rate is not finalized until we apply for the actual loan. Further, we haven’t settled on a floor plan for the home and we will likely want to add some options that will increase the price.
But despite those things still being in flux, the developer wants a 100万 deposit that we would only get back if Shinsei rejects our actual application.
Is this typical? Are these red flags? My concern is that Shinsei will drastically raise our interest rate at the final approval stage and we’ll be stuck with walking away and losing 100万 or going through with a much higher interest loan than expected. Im also worried that costs will escalate as we work on the floor plan since that’s not final either.
Any help would be greatly appreciated!
by Goldenshowers11